Finance

GOALS

  • A Private Equity company hired Norders to create an application which a ML-model in its centre that uses alternative data sources to forecast financial performance of non-publicly traded companies
  • The main objective was to ease the current shortlisting of potential target companies as well as finding "hidden champions" based on alternative data sources
  • Identifying companies with the highest probablity of having revenues that will increase in the next year

Data

  • Several independent data providers where used to create a compelling image of companies, including financial and organizational data.
  • Alternative data: website traffic
  • Social media followers
  • Customer review
  • News coverage

Analytics

  • Machine learning and statistical modelling algorithms
  • Big Data technologies for creating analytical boards and models
  • Python
  • Sentiment Analysis Algorithms
  • Cloud environment: AWS

Business top line KPIs focus to identify growing or declining businesses

  • Revenues growth
  • Liablities growth
  • Asset growth
  • Web traffic, relevance, news coverage, job opening, employees growth

Results

  • We outlined that despite non-representative years such as 2020 it is feasible to predict companies´ performance based on parameters found in alternative data sources Our work laid out the foundation for our client to build an entire cloud-based solution around it
  • Our work laid out the foundation for our client to build an entire cloud-based solution around it